City’s funding brings significant investment and jobs in key growth sectors

28 Jul 2019 in Where We Govern

I am proud to report that for the 2018/19 financial year, R2,7 billion worth of investment was facilitated by our Strategic Business Partners and Special Purpose Vehicle (SPV) companies that are supported by the City to facilitate investment, job creation and skills development.

The welcomed investments created 4 764 jobs and provided skills training to 2 109 individuals during the past financial year that ended in June 2019.

These successes are in line with our commitment to build an opportunity city and support growth in the economy that will lead to job creation,

‘The role of government is to create an enabling environment for job creation and driving investment, so more sectors can benefit and more entrepreneurs are able to join the job market. I am pleased by the efforts of our partners to further this goal. Our efforts have been worthwhile as Cape Town has maintained the lowest unemployment rate of all metros in the country over the past few quarters. Cape Town’s unemployment rate (21.2%) stands at around 6% lower than the national average. However, we must work harder to support job creation so that many more are able to earn an income and uplift themselves out of their circumstances,’ said Executive Mayor, Alderman Dan Plato.

Two of the key sectors, which consistently bring in investment and create jobs are the business process outsourcing and green economy industries.

To mention a prime example, between April and June 2019, Business Process Enabling South Africa (BPeSA WC), which is funded by the City, facilitated more than R389 million worth of investments, leading to 1 624 job opportunities. In addition, GreenCape facilitated investment worth R550 million, resulting in the creation of 263 jobs in the energy sector.

The City’s Enterprise and Investment Department funds several SPVs annually to deliver sector programmes and projects that are aligned with the City’s strategic priorities.

These sectors have been identified as priority sectors due to their potential to grow and develop the City’s economy and contribute to job creation.  The sectors include information communication and technology (ICT), business process outsourcing and off-shoring (BPO), the green economy, craft and design, clothing and textiles, and fashion.

Seven SPVs are currently receiving support from the City: the Cape Innovation and Technology Initiative (Citi), the Cape Town Fashion Council, Clotex, the Craft and Design Institute (CDI), GreenCape, Cape Clothing and Textile Cluster (CCTC) and Business Process Enabling South Africa(BPeSA). The City also supports Wesgro (the Western Cape’s destination marketing, investment and trade promotion agency) and the Western Cape Economic Development Partnership, to further promote trade and investment as well as build and support partnerships.

The SPV collaborations have also made a tangible contribution to industry development in identified sectors, particularly through training initiatives and industry events. Skills training was facilitated and collectively, between 2014 and June 2019, these training initiatives enhanced the skills of nearly 11 500 people, mainly from disadvantaged areas.

Between the 2012/13 and 2018/19 financial years, the City has dispersed over R169 million of funding to Wesgro and other SPVs. In return, these SPVs have facilitated over R19,5 billion worth of investment into Cape Town and created almost 32 000 direct jobs.  I am extremely excited about these successes and the commitment from our partners in helping to grow the economy and create jobs.

However, that is not good enough as too many people are still without jobs and we are committed to driving down the unemployment figure even more, as we push ahead with our mission to enhance economic inclusion.

The numbers over the past few years show that the City’s investment has been worth every cent when looking at the investment facilitated, jobs created and skills development opportunities delivered to our residents.